- Municipalities seek exclusive rights for electricity distribution
- SALGA applies for a court order granting municipalities exclusive rights
- Eskom vows to defend its rights under the ERA
Local Governments in South Africa, under the auspices of the South African Local Government Association (SALGA), have applied to the North Gauteng High Court for an Order giving municipalities the exclusive rights to distribute electricity to the consumers.
Speaking on the development, the Chief Operating Officer, SALGA Lance Joel, said, “We are not fighting; we are really seeking clarity on a very important matter. Our interpretation is that the electricity distribution function is a function that the Constitution specifically allocates to local government. However, in practice, both municipalities and other distributors offer these services,”
“This conversation is more about the financial sustainability of municipalities more than anything else,” Joel added.
According to SALGA, Eskom distributes electricity to consumers using the municipal infrastructures with no payment obligations to these municipalities. If the order is granted, Eskom would be required to enter into service delivery agreements with the municipalities for electricity distribution.
On the other hand, Eskom has vowed to defend its rights as provided for in the Electricity Regulation Act (ERA).